Orange County Retail Market Report

Submarket stands out on a statewide scale. Orange County’s retail sector remained sturdy over the past 12 months, with vacancy in June nearly matching the prior five-year average of 4.6 percent. This stability was largely driven by retailer demand in the Airport Area. Here, vacancy sat at 2.7 percent in June, which ranked as the lowest rate among California submarkets with more than 6 million square feet of inventory. This rate reflects retailers’ prioritization of the area and their willingness to pay a premium for space, as the local average asking rent is the second highest among the aforementioned group of submarkets. Moving forward, conditions are poised to stay tight in the submarket, as the area’s affluent population and significant count of white-collar positions props up local consumer spending. Additionally, the area’s active development pipeline is scant, heightening retailer competition for available space.